Natco Pharma Shares Rise More Than 1% After Board Approves Share Buyback Proposal

Natco Pharma announces Rs 210 crore share buyback.

Shares of Natco Pharma rose 1.12% on Friday, March 10, after the company informed that its board had approved a proposal to buy back up to 30 lakh shares at a maximum price of Rs 700 per share for a total amount not exceeding Rs 210 crore.

Natco Pharma is a vertically integrated, research and development (R&D)-focused pharmaceutical company headquartered in India. The company is engaged in the pharmaceutical business, including research and development, production and sales of raw materials and finished preparations.

In Friday’s trade, the stock opened at Rs 566 per share, compared with a previous close of Rs 566. It was trading at Rs 561.15 per share and rose further during the morning session, touching an intraday high of Rs 567.45. However, it failed to hold onto this rally.

The stock traded at Rs 558.90 at 10:55 am on the NSE, down 0.4%.

The stock hit a 52-week high of Rs 872.60 on March 10, 2022, and a 52-week low of Rs 502 on February 2, 2023, suggesting that at current levels, the stock is trading at more than 11% above its 52-week low and 36% below its 52-week high.

The stock has risen nearly 7% in the past month. Over the past six months, it has fallen almost 7%. The stock has generated a negative return of more than 33% over the past year.

On Wednesday, Natco Pharma reported through an official filing that the indicative maximum number of equity shares repurchased would be 30 lakh shares, based on the maximum buyback price and maximum buyback size.

It added that if equity shares were repurchased at a price lower than the maximum buyback price, the actual number of equity shares repurchased might exceed the indicative maximum buyback amount.

The company will purchase shares from the open market from shareholders, excluding promoters, groups of promoters and those who control the company.

The company’s promoters and promoter group have announced a buyback which will reduce the public shareholding to 50.37%, while the promoters’ shareholding will increase to 49.63%.

Currently, the promoters and the promoter group hold 8.91 crore shares, with a total shareholding of 48.82%, and the public has 9.34 crore shares, with an entire shareholding of 51.18%.

In other news, the company has announced the availability of additional strengths of Revlimid generics in 2.5 mg and 20 mg strengths in the US through its marketing partner Teva Pharmaceuticals.

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